City to update long-debated community insurance program

The City of Ottawa is moving forward with plans to update the way community groups receive insurance.

In the 2025-2026 insurance term, the Community Partners Insurance Program (CPIP) will be updated to include city-funded insurance for more groups.

The changes — outlined in a memo last week from Dan Chenier, the city's general manager of recreation, cultural and facility services — also include a new set of criteria groups must meet to get coverage.

The updated program is being celebrated by many organizations and city councillors as an end to a system they believed was inequitable.

Years in the making

CPIP is a holdover that saw the city cover commercial and general liability insurance for dozens of groups that existed before amalgamation in 2001, while others bore the costs themselves.

"There was an equity of access issue," said College ward Coun. Laine Johnson.

The city spent years trying to address the two-tiered system, before deciding in November 2023 that the only way forward was to axe CPIP and redirect $234,000 in savings toward funding grants that would have been open to a wide range of organizations.

But after disagreement from council, that proposal was walked back the same month.

In February 2024, council directed staff to create a revised program and reassess staffing requirements for its implementation.

"I'm so pleased that the city listened to community representatives through the consultation process," Johnson said.

How will it work?

Applications for the new insurance program will open in 2025.

Pending council approval, the city will hire two workers to accept applications and ensure community groups that get funding meet the eligibility requirements.

Among other criteria, groups will need to provide evidence they:

• Operate as a not-for-profit within the city.
• Represent a geographic community within city boundaries.
• Have existed for at least two years.
• Are democratically elected with a board of directors and host an annual general meeting.

According to the city, certain services provided by community partners — for instance, groups that solely operate outdoor rinks or carry out approved community gardening activities — will maintain coverage within an existing insurance program.

The city has coverage for groups under the current criteria until June 1, 2025, after which point it will need to renew coverage with its insurer.

Johnson said she doesn't anticipate any difficulties with renewal.

Full eligibility criteria will be released in early 2025, according to Chenier's memo. Successful applicants will be insured from June 1, 2025 until June 1, 2026.

Changes make a 'big difference'

For Lorrie Marlow, president of the Mechanicsville Community Association, it's a big relief to just have a chance at getting those insurance costs covered.

Marlow said it was a challenge for her small neighbourhood to pay more than $1,000 annually for the association's insurance through the city.

For the three or so events they host each year, that insurance was costly, Marlow said. In some years, she and other board members contributed about $200 out of their own pockets.

"We were spending all of our money just to get the insurance, and then our community events were limited to providing only things that we could do for free," Marlow said.

"This way we could have a little more money to maybe hire some music, provide free food ... that makes a big difference for us."

Will take time to 'work out the kinks'

While Johnson "couldn't be more happy" with the changes, she said it's possible not everyone will feel the same.

Some groups previously covered by CPIP might not be eligible under the new criteria, Johnson said, which could cause frustration.

"It will have to play out for a couple of years to work out the kinks with communities," she said. "They're always the best experts when they see that there's things that aren't represented."

Overall, though, the changes are an opportunity to level the playing field for community groups, Johnson said.

"There will be growing pains. That's how it is whenever you make a policy change," she said. "But the policy change was [made] with the community benefit at the heart of it."